In the latest market close, Roblox (RBLX) reached $62.05, with a +1.22% movement compared to the previous day. This move outpaced the S&P 500's daily gain of 0.16%. At the same time, the Dow added 0.25%, and the tech-heavy Nasdaq lost 0.06%.
Shares of the online gaming platform have appreciated by 8.96% over the course of the past month, outperforming the Consumer Discretionary sector's loss of 6.01% and the S&P 500's loss of 2.8%.
Market participants will be closely following the financial results of Roblox in its upcoming release. The company plans to announce its earnings on February 6, 2025. The company is expected to report EPS of -$0.46, up 11.54% from the prior-year quarter. At the same time, our most recent consensus estimate is projecting a revenue of $1.37 billion, reflecting a 21.48% rise from the equivalent quarter last year.
It is also important to note the recent changes to analyst estimates for Roblox. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the company's business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Roblox is currently sporting a Zacks Rank of #4 (Sell).
The Gaming industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 69, finds itself in the top 28% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
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